To be honest I forgot I had COS on my watchlist until I started cleaning it up recently. Not sure why it was there in the first place - possibly it was from a technical scan or screener.

Seems COS provides software for enterprise asset management so I assume it is something to do with optimising the use of assets and would appeal to a broader base not just Mining as in RUL. Companies similar to COS could include Integrated Research or Envirosuite.

Probably comparing the market cap to Smartpay was a bad example but I was making the point that this is a tech company with low cap and positive earnings per share.

Cosol has just popped up on my radar and I’ve added it to my watch list. I see @edgescape and @loshell are already on to it. See Edgescape’s straws here for more detail. Also see the 1H23 Results Presentation.

Although it has only been listed for a few years it is shaping up to be a quality business. I think it looks interesting and it is worth a deeper dive.

I’ve done a quick scan of the business and the fundamentals. Here are the things that have caught my attention:

• COSOL is a global Enterprise Asset Management (EAM) technology-enabled solution provider that optimises operations in asset-intensive industries such as natural resources, energy and water utilities, public infrastructure and defence.
• Market Cap $116 million
• Diversified blue chip client base
• Diversified across services, sectors and geographies (85% APAC, 15% North America)
• 32% historical earnings growth rate, and 28.2% in the last year. Analysts forecast 22% annual earnings growth going forward
• Good free cash flows
• ROE has improved from 8% to 16% since listing, and forecast to be 20% going forward
• Gross margins 25%, Net margin 10%
• Net debt to equity 22%
• 53% of earnings reinvested
• 2.5% fully franked up coming dividend
• Forward PE 18x
• PEG ratio 0.8 (<1)
• StockVal valuation indicates 11% return at the current price of 76cps. I would like to buy in at a lower price, but it doesn’t look expensive.

Orange flag

• One of the top four shareholder has recently sold 972,000 shares at 80cps ($777,599). Could be some profit taking in a shaky market.

Disc: not held

@Rick

The substantial shareholder selling is Bradley Skeggs, former Executive director/Chairman of Cosol who appears to have gone for a treechange out in WA and now owns/runs a farm.

Probably needs the money to pay the bills for his new venture.

Linkedin profile (I usually hate going into Linkedin, but this is one of the rare times when you need to use it to check management history)

I'm not too worried about it right now after digging up the history, still 6.73m shares and after leaving for more than 2 years so this is actually good even for a former insider and perhaps proves he doesn't hold any grudges. So I don't think this qualifies as a orange flag.

And I don't think the market is too worried judging by the recent price spike.

Maybe some selling from Brad could provide more liquidity to the market and better price discovery which maybe is a good thing? As most days, the share price hardly moves.

As usual, this is my opinion and I'm sure there are those here smarter than me who will provide a counter-argument.

[held]